Do Car Safety Features Decrease Insurance Cost
For drivers wondering whether car safety features decrease their insurance cost, the answer is yes. Having good safety features on your vehicle can drive down your costs and lead to low premium amounts that can help you save and manage your policy better.
Getting Lower Rates from Your Insurer
Policy holders can often directly see how their safety features decrease their insurance cost. When you ask your insurance rep about an itemized auto insurance bill, he or she will be able to show you specific parts of your policy that discount your premium, due to standard safety features like anti-lock brakes, airbags or newer technology. It will be helpful to see how the insurers have calculated the value of each of your features. It demonstrates how much each of these is contributing to safety on the road.
Why Safety Features Help with Insurance Cost
Auto insurance companies can offer lower premium rates for cars with competitive safety features, because these features actively prevent some forms of accidents. Insurers look at the specific ways that these safety features work, and calculate the lower chance of accident. For example, an insurance company or a third party that calculates safety statistics can see that anti-lock brakes will prevent some forms of skidding on ice. They can value that specific type of lowered risk into a premium.
For other features like a tire pressure monitoring system, insurance companies can look at statistics regarding tire blowouts related to under-inflation. This kind of risk assessment leads to some direct discounts for drivers who can prove that their car is equipped with them. These features that have met effectiveness tests at the factory and gained the approval of the manufacturer.
Other Ways Safety Features Help
Even if you don't receive a direct discount on your premium for a specific safety feature, you can still save money. Part of auto insurance premium calculations involve using the ISO or Insurance Services Office. This agency calculates risk based on a specific auto model. Each vehicle gets its own ISO rating, with many factors taken into account, including safety features. This means that there are two ways to get discounts with safety features.
- Insurers can look at a specific feature and its use
- Insurers can calculate the savings into an overall risk assessment for a vehicle
This shows you how complex an insurer’s risk assessment can be.
All of this adds up to a good chance at savings for drivers who are purchasing safety-rated vehicles with competitive safety features. That's why some financial experts will explain that the cost of insuring a newer vehicle is sometimes offset by the safety features that it has. Always take a close look at what your vehicle is equipped with, and talk to your insurance representative about how that may affect your premium. Being curious about all items on your premium is going to save you money and help you negotiate better rates.
